Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 15 pages
Data source: Published sources
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Abstract
Twitter, the popular micro blogging social media platform, since its inception in 2006, had been delivering the value proposition of short and instant messaging to its users. However, despite exhibiting promising growth in the succeeding years, it seemed to plateau in Q1 of 2021. Jack Dorsey (Dorsey), the Co-founder and CEO, realised that the revenue model was not delivering expected returns. There was ample proof to it. When compared to similar value proposition of Facebook, Twitter was still a dwarf in terms of revenues fetched, daily active users, user engagement, market capitalisation, etc, in the same timeframe. The market statistics of Twitter did not fare well even when compared with the ones that debuted much later. Notably, advertising constituted majorly (86%) to Twitter's revenues. In 2021, Dorsey, well aware of the company's situation, chalked out a road map which promised a doubling of revenues by 2023. The map entailed a creator focused monetisation strategy and all business activities (be it adding innovative features or strategic acquisitions), were geared towards it. The company introduced features like Super Follow, Fleets, Revue, Twitter Blue, and depended heavily on subscription based products and influencers. Dorsey also aimed to add 315 million daily active users by 2023 and monetise them; a plan which analysts opined had inherent risks. Monetising content creators/users might alienate them from the company much to the benefit of competitors. Besides, this revenue stream would hardly fetch massive returns. How would Dorsey, then, achieve the 'doubling of revenues by 2023' target? What else could he do to accelerate innovation and growth?
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 2021.Geographical setting
Region:
World/global
Country:
United States
Featured company
Twitter
Employees:
10000+
Type:
Public company
Industry:
Social media
About
Abstract
Twitter, the popular micro blogging social media platform, since its inception in 2006, had been delivering the value proposition of short and instant messaging to its users. However, despite exhibiting promising growth in the succeeding years, it seemed to plateau in Q1 of 2021. Jack Dorsey (Dorsey), the Co-founder and CEO, realised that the revenue model was not delivering expected returns. There was ample proof to it. When compared to similar value proposition of Facebook, Twitter was still a dwarf in terms of revenues fetched, daily active users, user engagement, market capitalisation, etc, in the same timeframe. The market statistics of Twitter did not fare well even when compared with the ones that debuted much later. Notably, advertising constituted majorly (86%) to Twitter's revenues. In 2021, Dorsey, well aware of the company's situation, chalked out a road map which promised a doubling of revenues by 2023. The map entailed a creator focused monetisation strategy and all business activities (be it adding innovative features or strategic acquisitions), were geared towards it. The company introduced features like Super Follow, Fleets, Revue, Twitter Blue, and depended heavily on subscription based products and influencers. Dorsey also aimed to add 315 million daily active users by 2023 and monetise them; a plan which analysts opined had inherent risks. Monetising content creators/users might alienate them from the company much to the benefit of competitors. Besides, this revenue stream would hardly fetch massive returns. How would Dorsey, then, achieve the 'doubling of revenues by 2023' target? What else could he do to accelerate innovation and growth?
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2021.Geographical setting
Region:
World/global
Country:
United States
Featured company
Twitter
Employees:
10000+
Type:
Public company
Industry:
Social media